Housing
6
min read

Navigating The Dutch Housing Market in 2025

The Dutch housing market is experiencing a period of significant change, bringing unique challenges for HR and Global Mobility professionals. Supporting international employees through these transitions requires not only an understanding of the current housing landscape but also strategies to help navigate a competitive and evolving market. This blog draws on insights from our Housing Matters webinar and additional data, offering a comprehensive guide to managing housing challenges in the Netherlands.

Understanding the Dutch Housing Market: A Historical Perspective

The Dutch housing market is steeped in a history of policy intervention, economic shifts, and evolving demographics. Post-World War II housing shortages led to significant government involvement in housing construction, shaping the foundations of today's market. Subsequent decades saw periods of economic growth that increased housing demand, particularly in urban centres like Amsterdam, Rotterdam, and The Hague.

By 2024, the market had become one of the most competitive in Europe, marked by high demand, limited supply, and regulatory challenges. Approximately 40% of the housing stock is rental, with nearly 34% classified as social housing. Yet, international hires face significant obstacles, such as long waiting lists for social housing and rising costs in the private sector.

The Affordable Rental Act: A 2024 Game-Changer

In July 2024, the Affordable Rental Act brought sweeping changes to the Dutch housing market. Designed to protect low- to middle-income tenants, it introduced two pivotal changes:

  1. Prohibition of Temporary Rental Contracts
    • All new contracts must now be indefinite, with a minimum 12-month stay.
    • This shift aims to provide tenants with greater stability but poses challenges for international hires with short-term contracts.
  2. Price Regulation in the Mid-Rental Sector
    • Properties earning between 143 and 186 points under the Dutch housing point system are capped at €1,157 per month.
    • Factors such as property size, WOZ value, and energy efficiency influence this scoring.

These changes, while tenant-focused, have led to a contraction in available rental properties as landlords pivot toward selling their assets. For HR professionals, this makes the already competitive housing market even more challenging to navigate.

Current Market Realities

The ripple effects of the Affordable Rental Act have reshaped the Dutch housing market in several ways:

  • Supply Constraints: A significant number of landlords have exited the rental market, leading to reduced availability.
  • Rising Prices: The limited supply has driven prices higher, particularly for properties outside regulated price caps.
  • Tenant Preferences: Landlords are favouring tenants with long-term employment contracts, making it harder for expats on temporary assignments to secure housing.
"The mid-rental sector has seen a decline in options under €2,500 per month, making it increasingly important for employers to support their international hires proactively." - According to Erika Barbato, Settly’s in-house global mobility expert,

Average Rental Pricing in Major Dutch Cities (as of November 2024)

The cost of renting varies significantly depending on location. Here's a snapshot of average rental prices:

An overview of the average rental pricing in the different municipalities of The Netherlands

Unique Aspects of Dutch Housing

Relocating to the Netherlands comes with surprises for international employees. Housing in the Netherlands often reflects local cultural and architectural norms, such as:

  • Compact Living: Apartments tend to be smaller, particularly in urban areas, requiring thoughtful furniture selection.
  • Minimalist Fixtures: New tenants may find bare ceiling wires, requiring them to install light fixtures.
  • Steep Stairs: Narrow, steep staircases are common in older buildings, often without elevators.
  • Cold Water in Toilet Sinks: Many homes have only cold water taps in restroom sinks, a quirk that surprises newcomers.

Understanding these nuances can help HR teams prepare employees for what to expect, reducing culture shock and easing transitions.

The Role of Temporary Housing

Temporary housing plays a critical role in supporting relocating employees. Settly recommends securing at least one month of temporary accommodation to provide a buffer for employees to find their long-term homes.

This period allows for:

  • In-person property viewings
  • Adjustment to local living conditions
  • Reduction of initial relocation stress

Managing Employee Expectations

Clear communication is essential to setting realistic expectations. Here are three key areas to address:

  1. Timeline: The home search process can take 3–6 weeks, especially in high-demand cities. Employees should be encouraged to plan accordingly.
  2. Budget: Tenants are typically required to earn three times the monthly rental price and pay two months' deposit upfront.
  3. Flexibility: Encouraging employees to consider alternatives to Amsterdam, such as Haarlem, Utrecht, or Rotterdam, can open up more affordable options without compromising on quality of life.
Essential tips that potential renters, buyers and tenants should be aware of.

Best Practices for Managing Employee Expectations

Supporting international hires effectively requires strategic planning. Here are four best practices to adopt:

  1. Pre-Arrival Briefings
    Provide employees with comprehensive cost-of-living data, neighbourhood guides, and housing expectations.
  2. Partner with Experts
    Work with relocation service providers like Settly to offer tailored support, from needs assessments to utility setup.
  3. Advocate for Policy Changes
    HR leaders can work collectively to influence housing policies that better accommodate the needs of expats.
  4. Embrace Flexibility
    Recognize that the first property may not meet all an employee's criteria. Flexibility is key, especially in a constrained market.

Data Insights into the Housing Market

To illustrate the scale of the housing challenge, consider these data points:

  • 40% of housing stock in the Netherlands is rental, but only a fraction is accessible to expats.
  • The three-times rule creates financial hurdles for many international hires, particularly those in entry-level roles.
  • Cities like Rotterdam and Utrecht offer rents 15–20% lower than Amsterdam, making them attractive alternatives.

The Importance of Employer Support

Relocation is more than just a logistical challenge; it’s an emotional journey. Employers that prioritise employee well-being during the relocation process often see improved retention rates and higher productivity.

Professional relocation services, such as Settly’s Expat Housing Services, offer:

  • Personalised needs assessments
  • Guided property searches
  • Support with lease negotiations
  • Utility setup and property handovers

By alleviating these burdens, employers enable their employees to focus on their roles and adapt more quickly to their new environment.

Looking Ahead into 2025

The Dutch housing market remains in flux, but the challenges it presents are not insurmountable. By staying informed, collaborating with experts, and fostering open communication, HR and Global Mobility professionals can turn obstacles into opportunities.

While the Affordable Rental Act has introduced complexities, it also represents an effort to create a fairer, more stable housing market. For international hires, success lies in preparation, flexibility, and robust employer support.

"The first property is rarely the dream home, but it’s a stepping stone. With patience and the right guidance, employees will find their place—and their community—in the Netherlands." - Erika Barbato

Settly is here to help make that transition as smooth and stress-free as possible, ensuring your employees thrive both professionally and personally.

For more information, check out the full details in our Dutch Housing Market Slides

Published
Nov 27, 2024

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